Refer to the information provided in Table 3.1 below to answer the question(s) that follow.
Table 3.1Price per PizzaQuantity Demanded (Pizzas per Month)Quantity Supplied (Pizzas per Month)$31,200 600 61,000 700 9 800 80012 600 90015 4001,000Refer to Table 3.1. If the price per pizza is $9, the price will
A. remain constant because the market is in equilibrium.
B. decrease because there is an excess supply in the market.
C. increase because there is an excess supply in the market.
D. increase because there is an excess demand in the market.
Answer: A
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There are only two people in the world (Adam and Eve) and only one good (apples). Adam has four apples and a total utility in money terms from apple consumption of $16; Eve has four apples and a total utility from apple consumption of $20 . Which of the following statements must be true?
a. Eve's marginal utility from consuming her fourth apple must be greater than Adam's marginal utility from consuming his fourth apple. b. The total utility of society will rise if Adam gives Eve one apple. c. If Adam and Eve each always has a positive marginal utility from consuming apples, the total utility of society can only be increased by an increase in the total number of apples available for consumption. d. Adam's average utility from consuming apples is greater than Eve's average utility from consuming apples.
If the Fed buys a U.S. Treasury bill from a member of the public, the banking system has
a. less reserves and the money supply tends to fall. b. more reserves and the money supply tends to fall. c. less reserves and the money supply tends to grow. d. more reserves and the money supply tends to grow.
Which of the following will NOT affect the elasticity of demand for a product?
A. the cost of producing the product B. the number of substitutes C. the percentage of the consumer's budget spent on the product D. how long consumers have to adapt to price changes E. all of the above will affect the elasticity of demand for a product
What function is money serving when you deposit money in a savings account?
A. A medium of exchange. B. A unit of account. C. A store of value. D. A checkable deposit.